Foreign Currency Market

Much has been said these last days about the low expectations of growing in the United States, the subprime crisis, the high crude prices and the diversification plans of the reserves in countries of the Middle East and China. All these factors answer to the evolution of the foreign currencies regarding to the dollar.
Most of the countries of the world show today a major evolution of their foreign currencies regarding to the American currency. This situation brings uncertainty in the countries that have more quantity of reserves in dollars as they lose value every day.
The dollar devaluation and the appreciation of the euro make some people celebrate and others complain. Most of the operators agree with the situation as their investment improve every day, even if, the evolution of the euro, makes the German currency worry as it sees its disadvantage in front of the euro. Some days ago Angela Merkel, the German chancellor recognised that a strong euro is not a positive factor for a country and that this evolution of the foreign currency shows a problem.
This uncertainty trend is see also in what happens every day at the market. Generally when there are fears about the way that the economy will go in the world, as it happens today, the market takes some safety foreign currencies as the dollar. Althought this trend has changed, the evolution of the european foreign currency has made investors protect themselves with this currency.
The euro foreign currency evolution will break the barrier of 1,50 dollars, this the investors know it and they also believe that this is not a temporary trend, but a tren that is going to continue definitely.